A physical inventory counts every item in scope at a specific date, usually with activity paused, and compares the result with the records. It is the American term for a full stock-take. For inventory (goods for sale) the focus is quantities; for fixed assets it is individual items, each with its own ID.
Why it matters
Records drift: items are moved without being recorded, lost, stolen, disposed of informally or bought without being registered. A physical inventory resets the records to reality and gives auditors evidence that the balance sheet is supported.
Physical inventory vs cycle count
A physical inventory is a periodic, all-at-once count. A cycle count spreads counting across the year. Both end in reconciliation.
In Asetavo
Run a full-scope audit across all locations, count with phone scans or bulk RFID, and get a found/missing/unregistered report.